Webpack 2 not loading imports for Angular2 Typescript application

I'm trying to implement webpack on a medium size angular2 project that uses typescript. But when I run webpack it only bundles the 2 files I specify in the config file. It never traverses through the import tree and loads the rest of the modules.

I've got a fairly simple configuration set up. I'd like to get it just bundling the typescript to start with. Then I'll move onto bundling more files.

When I change the import {} from "x" syntax to var {} = require("x"). webpack works, however, throws hundreds of errors as it cannot resolve anything imported from the @angular2 directory.

How do I get webpack to traverse through the 'import' statements and bundle more than just one file into the result?